Manama, 1st October 2024: KPMG International today published its KPMG global tech report 2024, which explores the tech strategies employed by organizations across the globe to deliver value against a backdrop of swift tech advancements and the accompanying shift within the marketplace. It also examines how organizations have balanced their need to keep up with the pace of change with the importance of prioritizing initiatives based on their business value despite the temptation to make hurried business decisions for fear of falling behind or missing out.
According to the new report in which more than 2,450 tech execs, CIOs, CTOs and CISOs worldwide were surveyed, the industry is getting better at identifying and delivering value with many areas demonstrating measurable improvements on last year. It should come as no surprise that the undeniable pace of tech change led to over three quarters of the respondents sharing that their major concern is that they struggle to keep up; however, this concern was counterbalanced by 87 percent of respondents reporting higher profits and better performance thanks to their tech investments — a 25 percent increase on 2023. This encouraging stat is perhaps on account of organizations adopting a more balanced view when considering their tech investment, with 53 percent strategically evaluating their tech investment portfolio to ensure it is aligned to their long-term strategic goals.
According to Manav Prakash, Partner, Advisory Services, “AI and Data has dominated the headlines over the last two years. The report reveals encouraging news that almost three quarters of organizations are already achieving business value from their investments in AI, Data management and overall tech enablements, despite only one in three achieving this at scale. To unlock sustainable value and achieve success that outlasts the hype, tech leaders should apply conventional rigor, build consensus, unlock AI capability, and drive trusted AI transformation across their organizations.
Although it is positive to see that 74 percent of respondents say AI is already increasing the productivity of their knowledge workers, the report discloses that AI is also fueling anxiety within the workplace with 78 percent worrying about the potential impact it could have on ‘Talent Management’.”
“As organizations increasingly profit from their technological investments, it is essential to have robust ambitions to harness the advantages of swiftly advancing technologies. Tech executives should focus on strategy over hype to help guarantee that their organization's investments in technology continue to produce significant benefits,” said Guy Holland, Global Leader, CIO Center of Excellence, KPMG International.
This year, a significant uplift was also observed in data capability, now cited as a critical enabler within the modern business, shifting from differentiator to an expectation within the modern enterprise. It is clear the bar has been raised when it comes to data maturity. While tech professionals continue to look at the trends set by their market peers for guidance, more tech execs are basing investment decisions on their own primary evidence. According to the research, frequent data-centric evaluation was recorded as one of the top two best tactics for achieving quick wins from tech investments with organizations in the top two data maturity categories more likely to be satisfied with the value generated across all their tech investments. However, the research indicates that only 24 percent of organizations are actively focusing on nurturing a data-centric culture and ensuring data interoperability in the near term, which may present a substantial barrier to harnessing the full potential of data-driven insights.
“A data-driven approach is considered a necessity. Tech execs who remain steadfast in leveraging both real-time and predictive insights from an array of sources to make informed decisions are expected to continue to secure value from tech innovation,” said Guy Holland. “Proof of concept tests and return on investment should be prioritized over herd mentality.”
Jeyapriya Partiban, Partner, Head of Advisory, stated, “Data is clearly fundamental to the process of digital transformation and harnessing value out of tech investments. The survey shows leaders view data security as a priority evidenced by 35 percent of respondents focusing on improving the protection of their data in the next 12 months, 33 percent prioritizing data accessibility and democratization, and 32 percent prioritizing data governance. The report highlights, prioritizing risk and cybersecurity will remain essential components for securing value, with cybersecurity and privacy concerns reported as the factors most likely to trigger the emergency brake in a digital transformation program. The report also highlights a few additional threats to digital transformation success - 80 percent of executives say that risk aversion results in senior leadership responding to market forces slower than their competitors. In addition, poor governance and coordination appear in the top three toughest challenges that can potentially derail a transformation strategy, with 59 percent claiming their centralized decision-making reduces their organization’s ability to respond to market signals and embrace new tech. The good news is that these challenges can be overcome”.
About the research:
The study is based on a survey of 2,450 executives from 26 countries and territories:
• 27 percent from Asia Pacific
• 44 percent from Europe, Middle East and Africa (EMEA)
• 29 percent from the Americas
There are representatives from across eight industries, including energy financial services, energy, government, healthcare, industrial manufacturing, life sciences, tech, retail, and consumer packaged goods.